New IRS Guidance for the Taxation of NFTs: Applicable Tax Rules, NFT Transactions, Issues for Attorneys and Taxpayers
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Tax Law
- event Date
Wednesday, May 31, 2023
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
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BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
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This CLE/CPE webinar will provide tax counsel, accountants, and other advisers with a critical analysis of new IRS guidance regarding the tax treatment of non-fungible tokens (NFTs) and reporting obligations for taxpayers and investors. The panel will discuss recent IRS Notice 2023-27, treating NFTs as collectibles and the impact on taxpayers. The panel will also discuss the difference between NFTs and other cryptocurrencies, outline applicable IRS rules, and discuss proper reporting for NFTs.
Mr. Gordon concentrates on tax controversy and compliance, cryptocurrency law, FTC defense, internet law, and corporate litigation. He’s also popular among tech startups and affiliate marketers looking to stay on the right side of the legal fence while enhancing their bottom lines and minimizing liability.
Mr. McElroy advises clients, including early-stage startups, unicorns, and Fortune 100 multinationals on a wide array of domestic and international tax planning and tax controversy matters.
Mr. Mowbray focuses his practice on U.S. federal income tax matters, with an emphasis on international tax and the taxation of financial products. He regularly advises clients on ways to enhance the tax efficiency of commercial transactions and operating structures, including outbound investments by U.S. multinationals, inbound investments by non-U.S. multinationals, the structuring of cross-border financings, internal restructurings and reorganizations, and acquisitions. Mr. Mowbray also regularly advises clients on controversy matters involving the recognition of income, transfer pricing and the international tax provisions of the Tax Cuts and Jobs Act of 2017. In addition, he has significant experience with advising clients on digital asset transactions, offerings and entity and investment structures.
The creation and sale of NFTs have significant tax implications for sellers, purchasers, and investors. In response to the explosion of NFTs, the IRS recently released guidance under Notice 2023-27 specifically focused on the tax treatment of NFTs. Tax counsel and accountants for clients holding and selling NFTs must understand this new IRS guidance, as well as applicable tax rules and reporting requirements for these transactions.
Under Notice 2023-27, the IRS intends to tax certain NFTs as "collectibles." This characterization of NFTs directly impacts (1) whether the gain from a sale is taxed at a capital gains rate of 28 percent versus a more favorable capital gains rate for assets not characterized as collectibles and (2) whether a transfer of an NFT to an individual retirement account (IRA) results in a distribution from the IRA.
Tax counsel and advisers must recognize key issues stemming from recent IRS guidance, understand the applicable tax rules for NFTs and the differences from cryptocurrencies, consider the proper reporting and tax treatment for NFT transactions, and what the implications are for the IRS issuing proposed guidance.
Listen as our panel discusses the impact of IRS Notice 2023-27, critical tax considerations for NFT transactions, and other key issues for NFTs.
- Overview of NFTs
- Applicable tax rules
- IRS Notice 2023-27
- Characterization of NFTs and NFT transactions
- Reporting and compliance
The panel will review these and other key issues:
- How are U.S. tax rules applied to NFTs and NFT transactions?
- What characterization issues arise for NFTs in light of IRS Notice 2023-27?
- What are the reporting requirements and compliance pitfalls for NFTs and NFT transactions?
Learning Objectives
After completing this course, you will be able to:
- Identify tax rules applicable to NFT transactions
- Ascertain a complete understanding of the characterization of NFTs in light of IRS Notice 2023-27
- Recognize key reporting requirements and tax compliance issues related to NFTs and other digital assets
- Ascertain methods for minimizing tax implications of NFT transactions
- Field of Study: Taxes
- Level of Knowledge: Intermediate
- Advance Preparation: None
- Teaching Method: Seminar/Lecture
- Delivery Method: Group-Internet (via computer)
- Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
- Prerequisite: Three years+ business or public firm experience preparing income tax forms and schedules at mid-level within the organization, supervising other preparers/accountants. Specific knowledge and understanding of sale and exchange transactions; familiarity with virtual currency structures, foreign information reporting requirements.
Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.
Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
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